UEM Sunrise in tie-up with TM

PETALING JAYA: UEM Sunrise Bhd has teamed up with Telekom Malaysia Bhd (TM) to develop 1.69 acre owned by the latter in Jalan Raja Chulan, Kuala Lumpur into a high rise mixed-development.

The property company said that its indirect unit, Sunrise Quality Sdn Bhd would develop the project which comprised of serviced apartments and retail.

Under the agreement, Sunrise Quality would pay TM a guaranteed land cost of RM150mil as well as a 5% share of the gross development value of the project to be determined later.

UEM Sunrise executive director Datuk Izzaddin Idris said the group hoped to secure the necessary approvals over the next 12 to 24 months. “This deal is in line with our strategy to diversify as well as grow our business in the central region and we expect this project to contribute positively to our medium term growth,” he said in a statement yesterday.

UEM Sunrise’s revenue for its first quarter ended March 31 dropped to RM257.8mil from RM417.4mil the same period last year due to reduction in property development sales in the southern region.